Da Davidson Cuts Price Target on Pacific Sunwear (PSUN), Weak 4Q10 Results
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Price: $0.04 --0%
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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DA Davidson is maintaining their Neutral rating on shares of Pacific Sunwear of California (NASDAQ: PSUN), but is lowering their price target to $4.50 from $5 due to their weak 4Q10 results with revenue declining 10% y/y and their comps seeing a decline of 7%. Their gross margin of 18.2% was down 445 bps y/y.
The company released their 1Q11 guidance with comps coming in between -3% to 2% with a gross margin range of 18%-20%. Their SG&A expenses are expected to reach in between $67-$69 million, while their EPS range is a loss of $0.35 to a loss of $0.29.
As a result of the company's 4Q results and and their 1Q guidance, the firm is adjusting their estimates. They state that their 1Q11 comp, revenue and EPS estimates go from $178.7 million and $(0.27) to $181.0 million and $(0.33). Their 2011 estimates go from $912.2 million and $(0.65) to $912.9 million and $(0.76). The firms 2012 revenue and EPS estimates go from $934.2 million and $(0.36) to $927.9 million and $(0.48).
The firm comments that, "While the difficulties of this past holiday season linger into 1Q, with clearance activity impacting gross margin, we were encouraged by management’s commentary around a positive initial response to the new women’s spring arrivals. We noted improvement in the women’s product in recent store checks and believe this year’s assortment and new swimwear pricing strategy will yield improvement."
For more ratings news on Pacific Sunwear of California click here and for the rating history of Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $4.31 yesterday.
The company released their 1Q11 guidance with comps coming in between -3% to 2% with a gross margin range of 18%-20%. Their SG&A expenses are expected to reach in between $67-$69 million, while their EPS range is a loss of $0.35 to a loss of $0.29.
As a result of the company's 4Q results and and their 1Q guidance, the firm is adjusting their estimates. They state that their 1Q11 comp, revenue and EPS estimates go from $178.7 million and $(0.27) to $181.0 million and $(0.33). Their 2011 estimates go from $912.2 million and $(0.65) to $912.9 million and $(0.76). The firms 2012 revenue and EPS estimates go from $934.2 million and $(0.36) to $927.9 million and $(0.48).
The firm comments that, "While the difficulties of this past holiday season linger into 1Q, with clearance activity impacting gross margin, we were encouraged by management’s commentary around a positive initial response to the new women’s spring arrivals. We noted improvement in the women’s product in recent store checks and believe this year’s assortment and new swimwear pricing strategy will yield improvement."
For more ratings news on Pacific Sunwear of California click here and for the rating history of Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $4.31 yesterday.
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